Académique Documents
Professionnel Documents
Culture Documents
CEO and HR
Saumen Chakraborty
in an honorary capacity, stemming from their interest
in contributing to the HR profession. CEO and Neeraj Swaroop
Shikha Sharma
The underlying philosophy of the NHRDN is that every
human being has the potential for remarkable
HR Dhruv Prakash &
Joylyn Largo Afonso
achievement. HRD is a process by which employees in
organizations are enabled to: Preety Kumar
Arjun Srivastava
• acquire capabilities to perform various tasks
associated with their present and future roles; Githanjali Pannikar
Hugh Mitchell
• develop their inner potential for self and
organisational growth; Larry Israelite
Marc Effron
• develop an organisational culture where networking
relationships, teamwork and collaboration among N S Rajan
different units is strong, contributing to Rajeev Dubey
organisational growth and individual well-being. Satish Pradhan
S Y Siddiqui
April 2011
www.nationalhrd.org www.nationalhrd.org
CEOs’ SPEAK
4. Intangibles drive the tangibles… Dr. Anil Khandelwal 17
HRs’ SPEAK
12. Selecting HR Leaders: What CEOs look for Dhruv Prakash & 55
Joylyn Largo Afonso
18. A letter to the CEO about the state of talent Marc Effron 88
building, and how it will improve
21. Lessons from the stadium to the Boardroom Satish Pradhan 105
BOOK REVIEWS
23. CEO Expectations of HR, HR Challenges, 114
Metrics and Competencies
24. What Got You Here Won’t Get You There: Reviewed by 121
How Successful People Become Even More Vidhyaa M
Successful by Marshall Goldsmith, Mark Reiter
There are many facets to this relationship and many issues and
questions- some straight forward and obvious and others more subtle
and controversial. What do CEOs expect from the HR function and
the CHRO; what do they choose to rely on the CHRO for; what have
been the experiences; when and where do CHROs truly fail the CEOs;
what do CEOs look for in a CHRO from skills and competence point
of view; do CEOs truly heed to CHRO views; how do CHROs deal
with conflicts of CEO expectation and their own view of what is
good for the organisation; how can the CHRO be the facilitator of
CEO remuneration in the Remuneration Committee even while being
the direct report- these are only a sample of what one would want to
understand. We have attempted to give a flavour of some of these
perspectives and experiences.
Given below are glimpses of the articles to give you a flavour of the
same. We are inspired by the perfume industry that sells us so much
with just a spray of something. As you plunge in to the journal, you
will find…
Lynda Gratton’s book on the future — ‘The Shift’ is published by Harper Collins in the
UK in May. The third iteration of the Future of Work Consortium is being launched in
October 2011 with companies from all over the world. You can follow the progress on
Lynda Gratton’s blog: www.lyndagrattonfutureofwork.com.
You can also be part of the conversation about the future of work by joining the community
at www.hotspotsfutureofwork.com
Over the past decade, Dr. Charan has captured his business insights in numerous
books and articles. In the past five years, Dr. Charan’s books have sold more than 2
million copies. These include the bestseller Execution: The Discipline of Getting Things
Done and Confronting Reality, both co-authored with Larry Bossidy, What the CEO
Wants You to Know, Boards at Work, Every Business Is a Growth Business, Profitable
Growth, and Boards That Deliver.
HRS: Do you think the CHRO important i.e. the CFO and General
relationship with the CEO is any different Counsel. The CFO is crucial to CEO for
from the CEO relationship with the other Wall Street purposes, for board purposes
CXOs? If yes, in what way. and they have to work together. In most
RC: It’s a function of the competence of the cases, CEO will select the CFO where he
CHRO and the confidence that the CEO has can develop confidence. With the
in the CHRO. It is more to do with that governments getting more and more
relationship in comparison with the other involved in most of the companies, the
CXOs. There are two other key General Counsels are also becoming
relationships for the CEO that is crucial and crucial.
B. S. Nagesh has been with Shopper’s Stop Ltd since its inception
in 1991. Recognised as the pioneer of the retail boom in India,
Nagesh was voted by Business India as one of the top 50 managers
in India who will influence the Indian business scenario in the 21st
century.
Nagesh is the first Asian to be inducted into the “World Retail Hall
of Fame” 2008 along with Mr. Millard Drexler of J Crew, Sir Philip
Green of BHS and Arcadia and Mr. Amancio Ortega of Inditex at the World Retail
Congress 2008 conducted in Barcelona.
Nagesh has been involved in setting up and opening the country’s largest hypermarket
HyperCity, which was launched in May 2006. Hypercity has been declared as one of
the top 100 retail destinations in the world by Retail Week, UK and the best
hypermarket at the United States International Design Awards in New York.
In August this year, Nagesh was elevated as the Vice Chairman of Shoppers’ Stop in
a non executive position.
As part of his personal philosophy of Learn, Earn & Return, Nagesh stepped down
from all operational role in the K.Raheja Corp group in August 2009 at the age of 50.
He is setting up a charitable trust called TRRAIN to help retailers and retail associates
in country .
Nagesh and his wife Shailaja live in Versova along with their two daughters.
Nagesh loves the consumer space and is intrigued with the consumer and the
consumption story of India. He loves travelling for work and pleasure. He was a
keen sportsman in college and therefore with more time in hand wants to get back to
sports in the near future.
stage of the company’s evolution. I would Starting up and setting the company
like to look at the various stages as follows: and the first store:
— Starting of the company. The best phase in a retail CEO’s life is
— The first store and the second store. setting up a retail company. The CEO has
— Chain of stores and setting up of the to be the store manager and should take
HO or corporate office. responsibility, and be involved in the
3. Acting as an advisor and defining the But the task doesn’t end yet. Since the
metrics CEO’s priorities aren’t often channelised in
the right direction within the organisation,
4. Helping to create and engage with the and employees at times fail to see merit in
leaders of tomorrow what the organisation is attempting to do,
5. Innovating in the HR role to drive it is crucial for HR to be able to
business growth communicate these priorities to the
employees. Cascading such information
6. Creating a vibrant culture within the quickly and entirely is important to achieve
organisation complete alignment of the employees’
7. Aiding the CEO in creating goals to the organisation’s priorities.
organisation reputation globally.
2. Connecting the CEO with the pulse of
the organisation
1. Understanding the CEO’s priorities
and drive organisation transformation The pulse of the organisation cannot be
ascertained in the boardroom, and every
The CEO is the captain of the ship. It is as good HR leader is aware of that. It is not
simple as that. So, the HR leader has to start enough to connect with the employees and
by understanding what the CEO wants to try to understand the sentiments during a
accomplish in order of priorities and how downturn or a crisis period in the
he/she would like HR to drive organisation. Although CEOs are reluctant
organisation transformation. For this, the to put in time and effort to particularly
HR team has to spend time in not just pursue relationship building with
deciphering the organisation and its employees or encouraging one-on-one
values, but also read the CEO’s mind. A meetings, it is the job of a good HR leader
strong HR leader always attempts to align to make the CEO aware of its long-term
his/her priorities towards the specific impact.
actions and change agenda that makes
significant contribution in achieving the HR plays a vital role in sensing and sharing
CEO’s goals. Ultimately the HR leader information up and down within the
3. Building and sustaining a strong culture If employees are unable to link their job
within the organisation objectives to the organisation’s vision and
strategy, how could I expect them to be
Engagement & alignment of employees aligned and committed? How do we
to organisation goals empower them to take decisions when
they don’t have a clear understanding of
Do employees feel engaged and motivated? Are the implications and impact of their
they aligned to organisational goals? The decisions on overall strategy?
answer to this question has often led me
to review the execution strategy and also At Standard Chartered Bank, we believe
helped me stay connected to reality. In my that every employee needs to feel valued
view, HR has many roles to play here – a and part of the organisation. We follow a
change agent, flawless execution of simple KFCI model that guides all our
transforming business strategy into talent initiatives. Mentioned below are the few
strategy and being an employee things that we do to build engagement and
champion! create greater alignment among
employees — Communicate and Create
The key challenge for any organisation is Transparency.
to build an engaged and motivated
workforce that is aligned to organisation Communication: I believe there is no such
goals. Working cohesively as one unit thing as over communication and
despite being multi–cultural and multi– encourage my team to leverage all
location is the need of the hour. platforms to communicate with employees
across various locations. The key is two-
When I interact with young talent across
way interaction and we provide adequate
industries, I sense some impatience in
avenues for all employees to reach out to
today‘s generation to wait for the plan to
seniors and seek clarification or support.
unfold. They seem to be in a perennial
hurry to get somewhere and in a race to Create transparency: Enable systems and
get there first. So the challenge is not just processes to seek feedback, and we
to design systems and processes that help continuously track the quality of
identify talent, but a system that is discussions. We cannot have high
responsive to changing expectations and engagement where there is low
can balance the organisation’s needs with transparency or credible process.
employee demands. Transparency helps build credibility in the
Having said that, the employee system on the processes, decisions and
proposition has also changed over the overall leadership capability. When the
years. Private companies seldom system is perceived to be fair and
guarantee life-time employment – there transparent, difficult decisions become
are new terms today such as right sizing easy to communicate and handle.
and productivity challenges that often I constantly endeavour to ensure all our
determine the stability of employment initiatives help us achieve this. The HR
across organisations. Hence, it is only fair function is the custodian of employee well
that the current generation would prefer being and hence we have strong ‘Speak
to capitalise on the market environment. Up’ and grievance handling process to
Compensation can help drive engagement promote the right behaviours.
Some of our initiatives that have helped South of India. We leverage this forum
build a strong open and honest culture to ensure all relevant information is
are : shared with the regional teams from
Coimbatore to Guwahati. Our
• CEO town halls & Big Calls: I reach out
endeavour is to stay connected with
to all the employees across locations
every employee and reach out with as
through these town halls and share
much update and information as
with them the key messages, our
possible. At the same time to allow
strategic intent and the rationale
and encourage dialogues, we ensure
behind several decisions that we take
the management is accessible through
during that period. All business
the Regional Manco set ups.
leaders including me have regular
tele-conferences with our teams across • Awards & Recognition: The right
India and South Asia. Every quarter behaviour and performance needs to
we communicate with the team, be recognised and when recognised
reflect on our performances, some on a large platform helps build a
wins and opportunities lost. I believe common understanding of what is
this helps the larger team to align their rewarded and hence expected of each
focus towards relevant outcomes. The employee. We have several
Q&A sessions allows them to interact recognition forums starting from team
with senior leaders directly. level to annual CEO awards. The
• Location Visits: Every year, we divide country also participates in global
the region among the top team and recognition programs. All these help
travel to all the key locations and us build a strong sense of pride in the
spend time communicating with the organisation
teams at our concerned locations. This
In the last couple of years, the banking
has helped us build greater connect
industry in particular has undergone
with the employees and also ensured
some major transformation. We also
all employees share a common
aligned ourselves to future need, and in
understanding of the deliverables,
the process, did go through business
task at hand and the overall strategy
transformation. HR plays a key role in
• Regional Manco: Regional any transition or transformation journey.
Management Committee (Regional Being connected to people to know their
Manco) comprises of a team of senior pulse and also assess the level of
most business and HR representatives understanding among the staff on the
at regional level. We have 3 such organisation changes helps us align our
committees across North, East and efforts to gain the desired outcome. We
Building and sustaining a strong culture greater challenge. It’s my strong belief that
in the organisation our values and culture are a source of
competitive advantage, a critical part of
Culture is a primary determinant that
why our customers and clients bank with
differentiates world–class organisations
us, and why talented employees join and
from the rest.
stay with us.
Culture is deep rooted but manifests
through practices and behaviours. HR plays a critical role as the custodians
Multinational companies such as ours of organisational health and serves as the
spread across various geographies have a CEO’s “window” into the organisation.
I believe the key to building and The team had responsibility of retention
embedding the culture is to have managers of key people and separation of redundant
and senior leaders playing the role of staff, development of a total rewards
culture guardians. strategy for the combined companies,
communications strategy development
Another area where HR plays a significant and implementation, integration of payroll
role is in M&A and integrations. In benefits. And all this with speed and
implementing a M&A, most companies accuracy!
focus on financials, business integration
and process migration. But success often While I have listed 3 broad areas that I
hinges on how you deal with people issues believe are the drivers for a successful
and cultural integration. Standard organisation, this however doesn’t limit
Chartered Bank has successfully managed the scope of influence for HR. The range
many such transitions, be it Grindlays or is broad - from hiring right and deploying
American Express. the talent in the right role to ensuring a
healthy rate of attrition. From creating a
Completion of the acquisition and culture where talent can thrive and
integration — operationally and culturally employees can easily ‘speak up’. From
— has required human resources to play a working with diverse cultures and
major role. Right from development of nationalities to creating an environment
preliminary organisational designs and where “Diversity & Inclusion’ is sustained.
identification of the top management to Creating a learning organisation that
assessment of critical players and continuously improves the way it works.
deployment of appropriate resources in
the new company, there was a cross The task is huge and so are my
functional team led by HR working on this. expectations!
‘When we look at the future, human resources trends. He needs to be very involved with
is really the fundamental competitive factor customers, the technologies, the issues, the
for our organisation. So, from an organisational competition, and so on. He must possess
point of view, we need to develop that the business acumen, strategic thinking, and
capability. I think it’s very important for the organisational savvy and functional
Head of HR to have an understanding of the depth and have a convincing opinion and
business activities, the language, and the voice.’
Every leader has a primary style, the style the Energiser or Integrator type of
that they employ under normal leadership style. Strategic HR executives,
circumstances and under moderate while also emphasising social and
pressure and a secondary style which they interpersonal skills, use more
employ as pressure increases. collaborative skills, are more flexible
in their operational styles, display
CEOs, depending on the current business
higher tolerance for ambiguity and
strategy and the life stage of the
uncertainty, and view themselves as
organisation, look for the Executor or
partners in the overall management of the
the Energiser/Integrator profiles. HR
organisation and of addressing long-term
executives with the Executor profile have
issues.
strong social and communication skills,
tend to emphasise execution and short-
term goals, and view themselves as
Based on our experience with hiring HR
implementers of organisational initiatives.
heads in the last two years, the preferred
Increasingly, however, organisations are and the prevalent leadership styles in India
looking for HR leaders who possess are as follows.
5. Repute and Credibility: This aspect of Getting the right talent with right value
the CHRO’s function cuts across the fitment to funnel the business growth
defined roles and includes being is also a key part of the CHRO’s
custodian of the employer brand, responsibility. Increasingly, their role is
enhancing repute of the company by extending to managing transformation that
being thought leader in external results from managing and integrating
forums, being connected with acquisitions and changes in the business
external aspects enough to understand model. The CEOs have come to expect the
both usual and unusual business and CHRO to be a true leader of the talent
talent benchmarks. Gone are the days dimension, enabling growth and
when HR was confined to an internal transformation within the organisation.
role. HR leaders entrapped by implementation
Not all HR leaders see these enhanced of talent development processes in
dimensions of their roles and not all are isolation end up as ‘Tool Box’ managers
asked to perform on these, as such a role is and are not be able to step up to the
highly contextual to the complexity of challenges of the role.
organisation and business. Hence not all
CEOs expect this breadth of dimension, e.g. Advisor to Senior Leaders
the CHRO’s role context for an Indian Top leadership team dynamics and
group could vary with that of the India HR challenges are a bed of potential conflict,
Head in a MNC, and hence different but their interdependencies have to be
expectations for a similar role. leveraged and the CHRO can play an
important role in identifying, surfacing and
Trials & Balance from here on resolving these conflicts. In order to deal
The transformation of the role of the CHRO with this aspect of their role, the CHROs
poses newer challenges. Talent and need to be mature leaders themselves with
individual business and organisation For the most part, India stood at a vantage
levels. point during the periods of peak recession.
What we experienced here could arguably
The Mandate be termed as a slowdown of the economy;
nonetheless, it provided us with an
As the global economy went through the opportunity to learn from the experiences
phases of economic volatility, the need of of the west, consolidate our own efforts
the hour became – and continues to be – towards sustained growth and re-
an extremely close alignment between emphasise the importance of strategic
strategy and execution. Organisations put alignment. As organisations build out their
in place strategies to support immediate long term strategic plans for growth, we
business needs and monitored execution see plans that are both visionary and
in laborious detail to ensure that they were bullish about the growth possibilities in the
getting the best leverage from scarce next 3, 5 or 10 years. With organisational
resources. While the economy has steadied mandates set around aggressive but
itself or is slowly regaining momentum in sustainable top-line growth such as 3x top-
most regions, the lessons learnt in the past line growth, 25% incremental market share,
years remain – lessons re-learnt around the or strategies that provide 10x growth;
There are two key factors to a successful The HRBP role has four components to it:
HRBP and line leader relationship: 1) the 1) the strategic partner role, 2) the
skills and activity focus of the HRBP, and operations manager role, 3) the employee
2) how committed and effective line leaders mediator role, and 4) the emergency
are at managing their talent. Getting the responder role. (Figure 2) Each of these is
right skill, focus and engagement levels in very much a part of the daily activities that
this relationship are what should really be a HRBP engages in. We found that while it
at the centre of any “strategic HR function”. is inevitable that HRBPs will need to spend
a majority of their time in the operations
3. Ownership of Effective Business manager role, high performing and
Support is the Responsibility of the effective HRBPs carve out atleast one fifth
of their time (upto 8 hrs in a 42 hr
HRBP
workweek) to engage in activities related
CLC research indicates that more than 50% to the strategic partner role. The strategic
of the effectiveness of HR programs comes partner role includes activities such as
from the strength of the partnership HRBPs diagnosing the kind of talent their business
forge with their line partners. Progressive unit requires to execute on strategic
organisations have gone on to incentivise priorities or ensuring that the business is
HRBPs on the ability of the business to thinking long-term in building its
meet its targets, thereby setting the stage leadership capabilities. By so doing,
for greater collaboration between business they achieve up to three times more
leaders and HR. Irrespective of the organisational impact from the relationship
structure of the HR function, HR leaders with their business leaders than HRBPs
working directly with profit and loss focused on more traditional transactional
owners of businesses must be held activities.
Figure 2: Components of the HR Business Partner role
Dear Mr. CEO: they said your “talent brand” wasn’t strong
(whatever that meant).
1
Strack, Ranier, Caye, Jean-Michel, Leicht, Michael, Villis, Ulrich, Böhm, Hans, and McDonnell, Michael, The Future of HR in
Europe: Key Challenges through 2015, Boston Consulting Group, June 2007, p. 16
2
Ibid.
3
CEO Challenge 2007: Top 10 Challenges, Conference Board, October 2007.
4
Ashby, Meredith, Atwood, Nancy, Neisendorf, Barbara, The Evolving Role of the Board in CEO and “Back Bench” Senior Executive
Succession, Conference Board, No. 104, July 2004
“For I dipt into the future, far as human interprets globalisation as “the closer
eye could see, Saw the vision of the world, integration of the countries and peoples of
and all the wonder that would be.” : Alfred the world… and the breaking down of
Tennyson 1833 artificial barriers to the flows of goods,
services, capital, knowledge, and people
lobalisation has changed us into a
“G company that searches the world,
not just to sell or to source, but to find
across borders.” Granell, on the other hand,
cautioned that “Globalisation does not
mean eliminating differences, imitating
intellectual capital – the world’s best talents others, or allowing more developed
and greatest ideas,” observed Jack Welch, nations to impose their models.”
former CEO of GE, a trans-national
corporation that has verily transcended The many contours of globalisation
borders creating an enviable global embrace diverse facets: cultural, economic,
footprint. While globalisation as a modern strategic, connectedness and
era concept has captured the imagination, interdependence. In the borderless world
historians have long held that there is we live in today, where the central
enough evidence to suggest that the challenge is for leading organisations to be
phenomenon of international trade existed successful, endeavouring to be the best in
in times of yore. The famed Silk Route, the domestic arena goes hand in hand with
which connected China to Europe for silk the need to be reckoned as a globally
trade, for instance, has been an artery successful company competing with the
through which goods and people moved world class enterprises. Theodore Levitt
across borders seamlessly. Thomas had presciently observed in 1983 that the
Friedman, who famously proclaimed that world’s needs and desires have been
the world is flat, describes globalisation irrevocably homogenised, and only those
succinctly as “farther, faster, cheaper and that adopt a global approach would stay
deeper.” The economist Joseph Stiglitz successful in the long term. Levitt made an
ACKNOWLEDGEMENTS
Our profound thanks to all the contributors of articles, interviewers, interviewees
and book reviewers who have taken time off from their busy schedules out of
their dedicated interest to the field of Human Resources.
Similarly, this issue would not have been possible but for support from Shishir
Misra, DGM – Group Human Resources, Aditya Birla Management Corporation
Pvt. Ltd.
Our special thanks to Mr. Prabhakar L., VP-Human Resources, ITC, Agri-Business
Division, for meticulously screening every article word by word out of his passion
for the profession.
Our thanks to the professional editor Ms. Bina Raju for her painstaking editorial
support even while on tour to the USA.
He joined Mahindra & Mahindra Ltd. in January 2004 after a career spanning
29 years in the Tata Group, which he joined in 1975 as a member of the TAS, the
central managerial cadre of the Tata Group. He spent 21 years with Tata Steel, and the
next 7 years as Managing Director and CEO first of Tata Metaliks and then of Rallis
India.
Rajeev studied Economics at St. Stephens College, Delhi University, where he was
ranked first in the University, and at the Delhi School of Economics, where he received
a National Scholarship. He went on to do his MBA from the Yale School of
Management, USA as a J N Tata scholar, and was selected as a Distinguished Alumnus
of the School.
He serves on the CII National Committee of Indian MNCs, the CII Apex Council on
Affirmative Action and the CII Western Regional Council. Rajeev is a Member of the
National Board of NHRDN, the Chairperson of the Employer’s Federation of India
(EFI) Western Region, and a member of the Executive Committee of TERI – Business
Council for Sustainable Development. He serves on the Boards of the Lal Bahadur
Shastri Institute of Management and Technology (LBSIMT), Magic Bus – an NGO
that works with youth as well as children and the School of Inspired Leadership
(SOIL).
In this context, let me quote from the Sustainable growth requires a commitment
Harvard Commencement address of J. K. to the Triple Bottom Line of Profit, People
Rowling, the author who had known only and Planet. Till now the commitment to
failure in her personal and professional life community and planet has been more
till the astounding success of Harry Potter. intention than action, but the time has come
when Corporates will be under increasing
“It is impossible to live without failing at pressure to demonstrate that they mean
something, unless you live so cautiously and act on what they say. This pressure will
that you might as well not have lived at all come not only from activists but also from
– in which case, you fail by default. government and even investors and the
The knowledge that you will emerge wiser response will have to be sustained over a
and stronger from setbacks, that you will considerable period of time for it to show
never truly know yourself or the strength measurable results. The real skill will be
of your relationships, until both have been for the leader to convince his people that
tested by adversity: such knowledge is a this approach has to be enhanced and will
true gift, and even though painfully make sound business sense. Hence the
acquired it has been worth more to me than need for action covering product, process,
any qualification I ever earned.” people and community.
In fact sustainability holds the promise not
4. Trust : only of cost and operational improvement,
Of course, no major transformation or but of becoming a mother font for
quantum growth is possible unless we innovation on products, processes and
create Trust in the organisation: where we business models.
trust the leader and the leader trusts us. It is easier to accept this idea at the global
In fact, if you think of it, business and level; the real problem is in embracing and
commerce–in fact human civilisation–is implementing it at the local here and now
based on trust: our belief that people will level in the hurly-burly of daily life. This
do what they say (and hopefully say what cannot happen unless there is a
they mean). If this belief gets diluted or fundamental mind-shift in the deepest
compromised, no initiative can deliver its space/source from which individuals and
potential. Hence it is critical that leaders organisations think and operate.
are trusted and in turn trust those that I firmly believe that this must be a mass
“follow” them. movement with crusaders and apostles
How do we create trust? Clearly there has who can spread the word and instill them
to be competence and that competence in the minds of the young. Not only in
must be harnessed to achieving those who are being prepared for
organisational goals. But that is not leadership positions, but equally in those
enough. Respect for each other, and most who will serve in the value-chain right
important, walking the talk - where we say down to the grass – roots level.
what we think and do what we say. And
6. From the tyranny of either / or, to the
do so consistently over time. This is
authenticity, where we remove the mask, power of and :
be ourselves and show ourselves as we Creating synergy out of seemingly
truly are. conflicting forces and objectives, and the
Similarly in early 2005, the CEO & MD was Besides the above, we have 17 Joint Venture
of the view that the Dealership Companies Supplier companies and in order to
of Maruti are extremely weak on HR develop their HR functional maturity, we
functional maturity and hence would need hold Monthly HR review meetings with
to be supported in this regard to prepare the HR Heads of these companies to
them for future challenges. If they do not prepare them for the people Challenges
build the HR functional maturity, it may ahead of us. The same review is carried out
become a stumbling block for Maruti’s with the CEOs of these JVs once a quarter
future success in the field. The CEO urged to ensure seamless execution of action
Maruti HR to lead this unique initiative of plans discussed with the HR Heads. It is
building the HR functional maturity in very critical for us to handle and train our
about 220 Dealership Companies. It was a Channel partners.
two year project with great success and
clear measurement & impact analysis of At Maruti Suzuki we have maintained our
before and after status. Today, all Maruti labour cost at a competitive edge i.e below
Dealership Companies have professional 2% of the net sales over the years:
HR Managers playing the HR role and
evolving well with people challenges By keeping a balanced and a right mix of
getting tougher by the day in the dynamic manpower ratio of fresh (campus) Vs.
and competitive business environment of laterals (Experienced) and regular Vs.
present. outsourced.
Vendor HR Initiative was launched in the Competitive salary review every year
year 2009 to focus and uplift HR Functional across levels pegging a range of 60th to 75th
Maturity of our top 80 Vendor Companies. percentile of the comparable basket of
This was initiated in view of the concerns companies
in the Auto Industry on talent acquisition,
capability development, retention and We are a 27 years plus company and in next
employee relations including professional few years we will be seeing our people
management of contract workmen. The key reaching the superannuation phase.
part of the initiative was the sensitisation Therefore from 2006 onwards we are
of Vendor CEOs & their top management consciously inducting a good lot of young
teams on the criticality of top leadership & fresh technicians at the shop floor. The
role, building a positive work culture and whole idea for the induction of the fresh
people oriented HR policies & processes. talent is to create a talent pipeline in the
Subsequently working closely with each years to come. We are developing people
company to map the gaps in respect of the from within to take up higher roles and
three critical success parameters namely responsibilities, continuous investment in
top leadership role, work culture and specific capability programs for upgrading
people practices. Each Vendor Company of skills and competencies of our
is now working with a Consulting employees through internal and external
CLC Human Resources — To drive corporate performance, senior executives at the world’s
leading organisations use Corporate Executive Board to help them and their teams with actionable
insights, analytic tools, and advisory support to quickly and confidently focus efforts on what they
need to know, and do, next. We provide essential information by analyzing and disseminating the
most successful practices from our connected global network of clients.
CLC Human Resources, part of the Corporate Executive Board, is a membership of senior
executives with a shared commitment to steward enterprise-wide human resources management.
This membership offers a set of unique services and tools designed to assist human resources
leaders with their most pressing managerial, communications, and decision-making challenges.
CEOs in Asia-Pacific cite talent management as their top challenge, with employee attraction,
retention, and development being the top priorities for which they need HR support. However, HR
functions in Asia-Pacific face maximum challenges in addressing these high priority talent
management concerns of the CEO.
Measuring the business impact of HR is a key concern for the function, which may be addressed
by tracking organisational effectiveness metrics around employee productivity and innovation.
This brief discusses the CEO expectations of HR as well as challenges the HR function faces in
executing along those expectations. The brief also highlights HR metrics to track business
effectiveness as well as HR leadership and generalist competencies.
Source: APAC CEO Board, February, 2011 Source: APAC CEO Board, February, 2011
HR Challenges (Asia-Pacific)
Research indicates that the top talent priorities for the CEOs in Asia-Pacific,
also present the biggest challenges for HR executives in this region. The top
priorities, including talent attraction and retention as well as leadership development present the
following challenges in APAC:
Specific to India, CLC HR research shows that offering adequate future career opportunities can
impact an Indian employee's commitment by up to 42%. Also, 42% of Indian employees indicate
insufficient opportunities for career advancement as the key driver of turnover. Further, Indian
organisations can develop effective leaders through a focus on building global leadership capabilities
in Indian leaders.
Visit CLC HR’s India Topic Center for more guidance and resources on addressing these HR challenges in
India.
Operating Average operating expense Operating Expense per FTE is a broad measure of the
per FTE per Expense full-time productivity of the workforce. It measures the financial
equivalent employee productivity of the organisation, from an expense
perspective, as brought about collectively by every
individual employee.
Operating Average operating profit Operating Profit per FTE is a broad measure of the
Profit per FTE (before tax, interest, and productivity of the workforce. It measures the
depreciation) per full-time bottom-line financial productivity of the organisation
as equivalent employee brought about collectively by
individual employees. Every employee contributes to
the revenues and expenses of the organisation through
their own daily activities and through the way that
their jobs support and impact others. Higher profit per
FTE provides more funds which the organisation can
reinvest in itself or pay to owners.
Operating Average operating revenue Operating Revenue per FTE is a broad measure of the
Revenue per per full-time equivalent productivity of the workforce. It measures the top-line
FTE employee financial productivity of the organisation as brought
about collectively by every individual employee. Even
employees who do not sell business directly to
customers, through their daily work activities,
contribute to the ability of those revenue-producing
employees to produce revenue. Greater revenue per
FTE means more money with which the organisation
can pay expenses and, possibly, reap profits.
Return on Operating profit returned This measure compares operating profit dollars to the
Human for every dollar invested total compensation dollars required to produce those
Investment in employee compensation profits. A result of .5 means that the organisation earns
Ratio plus benefits one dollar of operating profit for every two dollars
invested in employees’ total compensation (including
cash compensation, benefits, and equit compensation).
This measure answers the question, “How many profit
dollars are we earning for every dollar we’ve invested
in the people doing the work?”
Work Units Number of relevant work This is a basic measure of the productivity of the
per FTE units produced per full-time workforce in terms of actual work units produced.
equivalent employee during The implementation of this measure will differ from
the period industry to industry, and even potentially from
organisation to organisation, based on the types of
products or services the employer produces. For a
manufacturer, this measure could include the number
of cars, pipe fittings, reams of paper, or cans of paint
produced. For a financial services or other services
firm, this measure could reflect the number of loans
originated, policies issued, hours billed, or contracts
written.
New Products Average new products and This measure indicates the dollar amount of
and Services services operating revenue revenue generated specifically by new products and
Revenue per per full-time equivalent services, relative to the size of the workforce. New
FTE employee Products and Services Revenue is a subset of
Operating Revenue, relating only to specific products
and services.
R&D Expense Research and development This measure indicates the organisation’s investment in
Rate (R&D) expense as a research and development (R&D), as represented on
percentage of total an income statement, as compared to total operating
operating expense expenses. A result of 20% means that R&D expenses
represented 20% of the organisation’s total operating
expenses.
Leadership • Ability to lead and obtain buy-in from executives and HR team
• Commitment to developing self and others
• Courage and conviction
• Ability to set clear goals for individuals and teams
• Demonstrated drive and ability to “get things done”
• Desire to act proactively in the organisation, rather than re-actively
• Demonstrated risk taking ability and innovative thinking
Priority Setting and • Ability to think strategically and clearly under pressure
Decision Making • Ability to design and prioritise HR strategies and plans to accomplish
HR objectives and support the business
• Ability to quickly size up multiple situations and complex problems and
make excellent, timely decisions
• Ability to use logic, analysis, experience, wisdom, and other resources
to make sound, timely decisions and to solve problems
References:
APAC CEO Board, Challenges at the Top, Corporate Executive Board (2011).
CLC Human Resources, The Role of the CHRO, Corporate Executive Board (2010).
Asia HR Executive Board, 2011 Asia HR Budget and Strategy Outlook, Corporate Executive Board (2010).
CLC Human Resources, Challenges in Creating a More Strategic HR Function, Corporate Executive Board (2010).
CLC Human Resources, HR Metrics Indicating Business Effectiveness, Corporate Executive Board (2008).
CLC Human Resources, Senior HR Leadership Competency Model—Compilation 2, Corporate Executive Board (2009).
CLC Learning and Development, Leadership Competency Model—Company N, Corporate Executive Board (2003).
CLC Human Resources, HRBP Competency Model, Corporate Executive Board (2007).
W hat’s holding you back? Your hard work is paying off. You are doing
well in your field. But there is something standing between you
and the next level of achievement. Perhaps one small flaw – a behaviour
you barely even recognise – is the only thing that’s keeping you from
where you want to be.
Mentoring and coaching people who have been through setbacks, or
are struggling to achieve some measure of success in their lives is one
thing. But, teaching successful people, particularly holding up a mirror to
them to show them what aspect of themselves they need to change is
quite a challenge.
Marshall Goldsmith has been successfully doing this for several years
now, and is an internationally acclaimed executive coach. The Harvard
Business Review asked Goldsmith, “What is the most common problem
faced by the executives that you coach?” Inside, he answers this question by discussing not only
the key beliefs of successful leaders, but also the behaviours that hold them back. He addresses
the fundamental problems that often come with success – and offers ways to solve these problems.
Goldsmith outlines twenty habits commonly found in the corporate environment and provides a
systematic approach to helping you achieve a positive change in behaviour.
Through several interesting anecdotes, Goldsmith highlights some beliefs and habits that inhibit
and impede successful people from going further. He cites four fundamental beliefs – the very
same beliefs that make for success, which also thwart further growth. These are:
• Belief in one’s skills and talent
• Confidence that one can succeed
• The optimism and motivation to succeed
• Belief that they choose to succeed (the free choice to succeed).
He refers to these beliefs as superstitions – the analogy being that just like superstitions, these
beliefs have held good (and may still do) in some context(s), but may be fallacious in another.
These beliefs could block the reality perspective.
Distilled from his experience with several successful executives, and using several interesting
anecdotes, Goldsmith lists twenty habits that stop them from growing further.
These are:
1. Winning too much (at all costs) – this can manifest by way of:
• Intense arguments
• Putting other people down
• Ignoring people
• Withholding information
• Playing favourites
Goldsmith says this streak can show up not just in the corporate world, but in various other
relationships as well.
3. Passing judgment
• “Overcoming this habit,” says Goldsmith, actually makes people see you as being more
agreeable.
8. Negativity
• Generally, such people try to establish their expertise or authority as superior to someone
else’s.
9. Withholding information
• More often than not, people in important positions hold information, or simply forget to
share it because they don’t realise the importance of doing so, or do not have the time for
it. But, the net result in the eyes of the people involved is still the same.
Reviewed by :
Vidhyaa M., Head - HR Formulations Division, Orchid Chemicals & Pharmaceuticals Ltd.
vidhyaam@orchidpharma.com
I picked up the book Jesus, CEO by Laurie Beth Jones for the interesting
title and a thought that the book will have equally interesting ideas. The
central theme of the book is looking at being successful as a CEO, drawing
inspiration from Jesus Christ and his way of doing things. First thing I
should say is that this book is not religion oriented but firmed up nicely
by the author to link up actions of Jesus to functions of a CEO : creating
a vision, building leadership team, succession management, execution,
rewards and recognition, and motivation. The essence is conveying CEO
like qualities, building a meaningful vision, and creating an organisation
for a larger purpose. The book has many sub themes on Jesus as a
CEO as it essentially covers acts of Jesus, how it impacted his mission,
similar acts by other leaders, and how you can relate to it in an
organisation. An example of a sub theme in the book is “He Broke Ranks”.
The sub theme speaks about how it is important sometimes for the leader
to break dysfunctional orders at different levels and fight for a cause. There are around 85 sub
themes that are covered in two or three pages. The best part is that each of it are quick reads and
the worst part is that there are many of them that make it difficult for one to grasp the essence.
The book starts with introducing the concept of “Omega” working style that blends both masculine
and feminine styles of management. The author spends less time in the book on this concept as
we go ahead reading it. As a take away, I would have liked bringing the thoughts from the book into
this concept of Omega working style as a great take away. From a HR partner supporting a CEO,
I see wonderful aspects related to leadership development, team management, succession planning,
change, and concepts like equality for women, dealt in a very compelling manner in the book. I am
sure a CEO would like to read it and will be inspired with the thoughts on strength of self-mastery,
strength of action and strength of relationship. It would be equally interesting for a HR or any
business manager to read this book as they can relate to it at a story level and also connect with
management concepts. For coaches and mentors, this would be a `Bible’ that they can refer to. I
would recommend this book for bringing Jesus closer to what we can relate and the author has
done it the second time also very efficiently. The first book was titled Jesus in blue jeans.
Reviewed by :
Dr. Sandeep K. Krishnan, Vice President, HR and Corporate Development,
Acropetal Technologies Ltd, sandeephrm@gmail.com
CEO and HR
Saumen Chakraborty
in an honorary capacity, stemming from their interest
in contributing to the HR profession. CEO and Neeraj Swaroop
Shikha Sharma
The underlying philosophy of the NHRDN is that every
human being has the potential for remarkable
HR Dhruv Prakash &
Joylyn Largo Afonso
achievement. HRD is a process by which employees in
organizations are enabled to: Preety Kumar
Arjun Srivastava
• acquire capabilities to perform various tasks
associated with their present and future roles; Githanjali Pannikar
Hugh Mitchell
• develop their inner potential for self and
organisational growth; Larry Israelite
Marc Effron
• develop an organisational culture where networking
relationships, teamwork and collaboration among N S Rajan
different units is strong, contributing to Rajeev Dubey
organisational growth and individual well-being. Satish Pradhan
S Y Siddiqui
April 2011
www.nationalhrd.org www.nationalhrd.org